Missouri Cannabis Market Study: No Need for More Licenses, Ownership Concerns Persist

Here is a crucial piece of Missouri’s cannabis story that a recent state-sponsored study missed entirely. Who actually owns the stores and farms? The study, released by the Department of Commerce and Insurance last week, declared Missouri’s legal market effectively mature and competitive. It found no need for more licenses. The headline conclusion was simple. Supply is meeting robust demand.

But that conclusion rests on a major blind spot. The consultants from Cannabis Public Policy Consulting LLC admitted they could not analyze ownership concentration. They lacked usable data on who holds the licenses. They could not see if a small group of companies controls many dispensaries under different license names.

This is a stunning gap. It is like judging the health of a grocery market by counting how many storefronts exist without knowing if they are all owned by Kroger. For you the consumer this matters. Real competition drives down prices and sparks innovation. A market dominated by a few big players does the opposite.

The study itself points out this limitation. “Ownership-based analyses would provide a more comprehensive assessment of market structure,” the report states. Division Director Amy Moore acknowledged the agency plans to incorporate ownership data in future reviews. But the state has already used this incomplete report to signal it sees no need for more licenses right now.

This comes as lawsuits allege some cannabis companies have violated Missouri’s antitrust laws. The state constitution allows for more licenses to maintain competition. Yet the key tool to measure that competition was not available.

What the study did find is telling. Missouri’s regulated market is dominant. About 93 percent of all cannabis purchases happen in licensed dispensaries. Consumers spend roughly half their monthly budget on flower followed by vapes and edibles. Total dispensary sales grew from $1.30 billion in 2023 to $1.51 billion in 2025. The number of active dispensary licenses rose from 201 to 220 over that period.

Average sales per store stayed steady between $6.5 million and $6.9 million. This suggests new stores are finding customers without cannibalizing existing business. The market is growing not just rearranging itself.

But again without ownership data this picture is incomplete. A stable average revenue could also mask a scenario where a few large chains are thriving while independent shops struggle.

The report’s recommendations focus on this data gap. It advises future policy should shift from expanding consumer access to maintaining competition. It specifically calls for monitoring ownership concentration using “de-identified” information to protect confidentiality. Combining ownership and sales data would give regulators the full picture.

The state is taking a small step. Earlier this month regulators proposed new rules. They would require each licensee to submit an annual report detailing ownership percentages. However division spokeswoman Lisa Cox confirmed these reports would still be subject to strict confidentiality rules under state law. This means the public and potentially even some regulators may remain in the dark.

Missouri’s market framework has built-in minimums. The constitution requires at least 24 dispensary licenses in each of the state’s eight congressional districts. It also mandates 144 microbusiness licenses designed to help disadvantaged owners. According to July figures the state has approved 222 dispensary licenses 63 manufacturers and 85 cultivators. Another 20 microbusinesses were approved.

The state’s position is that the market is working. Moore said the division will keep watching and decide when another study is needed. She cited the changing industry and the pending rollout of more microbusiness licenses.

For now the official story is one of success. Consumer demand is met. Sales are strong. But the critical question of who holds the power in this billion-dollar market remains unanswered. In business ownership is control. And until Missouri can see who controls what any declaration of a healthy competitive market is at best an incomplete assessment.

Key Findings from the Study:

• 93% of cannabis purchases occur in licensed dispensaries.
• Average consumer spending is around 50% on flower.
• Total dispensary sales rose from $1.30 billion to $1.51 billion from 2023 to 2025.
• Active dispensary licenses increased from 201 to 220 in the same period.
• Average sales per store remained between $6.5 million and $6.9 million.
• The constitution requires at least 24 dispensary licenses per congressional district.